Piranha Partners v. Neuhoff and Posse Energy, Ltd. v. Parsley Energy, LP: Interpreting Assignments with Ambiguous Exhibits
Title examiners often come across an assignment of oil and gas leases which contains inconsistencies between the granting language in the body of the assignment and the property descriptions contained in the exhibit attached thereto. The cases of Piranha Partners v. Neuhoff[1] and Posse Energy… Read more
Occidental Permian, Ltd. v. Citation 2002 Investment LLC: Texas Supreme Court rules that 1987 assignment conveyed all rights
In Occidental Permian, Ltd. v. Citation 2002 Investment LLC,[1] issued on May 17, 2024, the Supreme Court of Texas ruled that an assignment of oil and gas leases was not limited by the depth references contained in the assignment’s exhibit. Below is a summary of the facts in the case and the court’… Read more
Carl v. Hilcorp Energy Co.: Lessee Wins Dispute Over Post-Production Costs
In the case of Carl v. Hilcorp Energy Co., No. 24-0036, decided on May 17, 2024, the Texas Supreme Court ruled in favor of the operator in a royalty dispute involving post-production costs. The case addressed certified questions submitted to the Texas Supreme Court by the U.S. Fifth Circuit Court… Read more
Echols Minerals, LLC v. Green: Eastland Court of Appeals Limits Applicability of Duhig Rule
In Echols Minerals, LLC v. Green,[1] issued on August 17, 2023, the 11th Court of Appeals applied the precedent set by the Texas Supreme Court in Trial v. Dragon[2] to a case involving a Duhig issue.[3] In Dragon, the Texas Supreme Court narrowed the applicability of the “Duhig rule” to fact… Read more
Non-operators and the Obligation to Produce in the Wake of Cimarex and Cromwell
On September 27, 2023, the El Paso Court of Appeals rendered its decision in Cromwell v. Anadarko E&P Onshore, LLC[1], whereby it upheld and expanded its 2019 decision in Cimarex Energy Co. v. Anadarko Petroleum Corp.[2] The outcome in both cases will cause owners of “non-ops” to… Read more
Fort Worth Court of Appeals Construes Royalty “Add Back” Provision
On November 22, 2021, the Fort Worth Court of Appeals upheld a trial court grant of summary judgment in favor of the lessees to an oil and gas lease. The lessors alleged that the lessees failed to properly calculate and pay royalty. The lease at issue required royalty payment based on “… Read more
El Paso Appellate Court Rules on Oilfield Products Liability
On October 14, 2021, the El Paso Court of Appeals reversed a trial court order striking a responsible third-party designation in an oilfield products liability action. The case involves a frac sleeve assembly that working interest owners used to complete four horizontal wells in Andrews… Read more
Eastland Appellate Court Considers Meaning of “Leased Premises”
On October 7, 2021, the Eastland Court of Appeals held in King Operating v. Double Eagle Andrews that all lands included within the definition of “leased premises” in a granting clause are not necessarily considered part of the “leased premises” for habendum clause purposes. The… Read more
Appellate Court Upholds RRC MIPA Order
On October 27, 2021, the San Antonio Court of Appeals upheld a Texas Railroad Commission denial and dismissal of an application made under the Mineral Interest Pooling Act. The applicant was the mineral lessee of state-owned riverbed acreage, and the offset operator drilled and produced 16… Read more
El Paso Court of Appeals Decides Lease Termination Claim
On September 20, 2021, the El Paso Court of Appeals released its decision in Tier 1 Resources Partners v. Delaware Basin Resources LLC, in which the Court applied a continuous drilling provision to a two-tract lease in Reeves County, Texas. The lessors in Tier 1 executed oil and gas leases… Read more
Texas Supreme Court Issues Decision on Pooling Ratification
By: Michael K. Reer On June 11, 2021, the Texas Supreme Court issued its opinion in Strickhausen, in which the Court considered whether a lessor impliedly authorized a pooling agreement by depositing royalty checks calculated on a pooled basis. The lease at issue required that the… Read more
Inspector General Releases Report on USEPA Enforcement Activities
On May 13, 2021, the Office of Inspector General released Resource Constraints, Leadership Decisions, and Workforce Culture Led to a Decline in Federal Enforcement, a comprehensive audit of the U.S. Environmental Protection Agency’s compliance monitoring activities, enforcement actions, and… Read more
Opiela v. Railroad Commission of Texas.
TRAVIS COUNTY DISTRICT COURT HOLDS RRC LACKS AUTHORITY TO ISSUE PERMITS FOR ALLOCATION WELLS In April of 2021, the Opielas filed suit for judicial review of a permit issued by the Railroad Commission of Texas (“RRC”) in connection with an allocation well (the Audioslave A 102H Well) drilled by… Read more
Industry Update - April 19, 2021
[1]Rig Count Overview & Summary Count as of April 16, 2021, BAKER HUGHES, https://rigcount.bakerhughes.com/rig-count-overview (last visited 04/19/2021); North America Rig Count, BAKER HUGHES, https://rigcount.bakerhughes.com/na-rig-count (last visited 04/19/2021) (… Read more
Industry Update - March 29, 2021
[1]Rig Count Overview & Summary Count as of March 26, 2021, BAKER HUGHES, https://rigcount.bakerhughes.com/rig-count-overview (last visited 03/28/2021); North America Rig Count, BAKER HUGHES, https://rigcount.bakerhughes.com/na-rig-count (last visited 03/28/2021) (follow “Rigs by… Read more
Industry Update - March 15, 2021
[1]Rig Count Overview & Summary Count as of March 12, 2021, BAKER HUGHES, https://rigcount.bakerhughes.com/rig-count-overview (last visited 03/15/2021); North America Rig Count, BAKER HUGHES, https://rigcount.bakerhughes.com/na-rig-count (last visited 03/15/2021) (… Read more
Industry Update - March 8, 2021
[1]Rig Count Overview & Summary Count as of March 5, 2021, BAKER HUGHES, https://rigcount.bakerhughes.com/rig-count-overview (last visited 03/08/2021); North America Rig Count, BAKER HUGHES, https://rigcount.bakerhughes.com/na-rig-count (last visited 03/08/2021) (follow “Rigs… Read more
Industry Update - March 1, 2021
[1]Rig Count Overview & Summary Count as of February 26, 2021, BAKER HUGHES, https://rigcount.bakerhughes.com/rig-count-overview (last visited 03/01/2021); North America Rig Count, BAKER HUGHES, https://rigcount.bakerhughes.com/na-rig-count (last visited 03/01/2021) (follow “Rigs by State –… Read more